Nyrstar flags cost-cutting at Port Pirie lead smelter

Nyrstar said it needed to cut costs at its Port Pirie lead smelter if it were to pursue a $350 million upgrade at the plant.

The company's Zurich-based management said the smelter in South Australia was operating below expectations.

The 850 workers at the smelter have been told there is an urgent need to demonstrate its viability.

General manager Glenn Poynter said the smelter's output needed to improve but no jobs were at risk.

"We need to meet expectations in terms of particularly the tonnages of metals that we plan to produce, so that is the concern so we need to be able to demonstrate that we can deliver those expected tonnages and do that reliably over a period of years," he said.

"The plant is not at risk of closing. What we're talking about here is how can we improve the operation to deliver better results.

"We need to have a viable and sustainable operation for the next two to three years as we work through the implementation of that project."

Union worried about lack of upgrade commitment

Australian Workers Union official Wayne Hanson said the workforce could only do so much and he remained concerned Nyrstar was yet to commit to the redevelopment of the smelter.

"These comments are indicative of the themes of a desperate management team that is prepared to sheet the blame onto workers," he said.

"But workers can't be expected to match 21st century outcomes with 19th century plant and equipment."

Redevelopment plans aim to reduce emissions from the smelter which are considered a health risk to Port Pirie residents, especially children.

In its half-year results last month, Nyrstar said lead production increased by 18 per cent at Port Pirie in the first half of the year.

It said that was compared with the previous period when there was because an unplanned furnace shutdown, which lowered that half's result.